Fundamental Analysis

Weekly RoundUp Report 28/11/2017

• November 28, 2017

EVENT RECAP: WEEK ENDING 24^th NOVEMBER 2017   North America   New Orders for U.S. domestic goods contracted in October against an expected rise. The fall came against a backdrop of three consecutive months of gains in Core Durable Goods Orders.  Despite the pullback, investment remains strong and economic growth appears to be healthy. According to Markit Manufacturing and Services surveys the U.S. economy is experiencing a healthy pace of growth in the fourth quarter. Further, hiring remained strong during the period indicating optimism from industry as the economy moves into 2018.     Asia Pacific   Japan's Trade Balance data for October showed a widening of the trade surplus by 14% when compared with the previous year. Foreign demand for automobiles and machinery provide much of the growth in exports, despite a simultaneous rise in imports. Similarly, the Nikkei Manufacturing PMI survey indicated another month of expansion for the sector with a rise to 53.8 points.   United Kingdom   Arguably the biggest event of the week for Sterling rates was the HM Treasury Budget, delivered by Chancellor Hammond. The Treasury addressed the economic impact of Brexit and resultant worsening of the U.K. economy with growth expected to fall below 2% over the coming years, up until 2021. Estimates for third quarter growth came in line with expectations at 0.4% according to a report from the Office For National Statistics. Business investment is down 0.1% in the third quarter.   Europe   The German economy, despite political uncertainty, appears to be performing well. Business sentiment is healthy with economic expansion signaled by several Manufacturing and Services PMI surveys conducted in November. The German Ifo Business Climate report, in particular, indicated the second consecutive month of growing optimism among German business leaders, despite respondents admitting that current economic conditions were 'worse' than previous months.